China remained the largest source of foreign direct investment (FDI) in Pakistan for the first 11 months of the 2024-2025 fiscal year, with its net investment rising 32.04% from the same period a year earlier, the central bank said. Net FDI from China stood at $790.4 million between July 2024 and May 2025, up from $598.6 million in the corresponding period of the previous fiscal year, data from the State Bank of Pakistan (SBP) showed.

Chinese investment accounted for about 40% of Pakistan's total net FDI of $1.978 billion. Total inflows reached $2.893 billion, with outflows of $914.3 million. Gross FDI from China was $1.118 billion, offset by outflows of $327.6 million. For the month of May 2025 alone, China's net FDI was $79.9 million, making it the top investor with a 26.1% share of the month's total net inflow of $193.9 million.

Other significant contributors in May were the United Kingdom ($19.3 million), Hong Kong SAR of China($17.9 million), Switzerland ($16.1 million), and the United States ($12.4 million). Pakistan's power sector attracted the most investment during the 11-month period, with a net FDI of $391.5 million.

The financial business sector followed with $312.3 million, the food sector with $292.5 million, and oil and gas exploration with $139.1 million. Other sectors attracting investment included communications ($128.3 million), transport ($110 million), chemicals ($74.1 million), pharmaceuticals ($40.2 million), cement ($38.9 million), and transport equipment ($30.1 million), the report added.

Credit: Independent News Pakistan (INP) — Pak-China